What Are The Merits And Demerits Of Excise Duty?


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Ebony Nash Profile
Ebony Nash answered
When it comes to tax, everybody has something to say. Hence, the merits and demerits are indeed controversial. Everybody is going to disagree and hence, what I'll have to do is list some of the things that people might say are merits and demerits of an excise duty (which is a form of inland tax).

  • Merits

Of course, one of the major benefits of the tax system is that everybody in the country can benefit. Despite the fact you will have to pay money for the government, it means that the government is able to provide you with services throughout the year. Things like sidewalks, lampposts, and the upkeep of the streets - as well as many more services, can be kept up using the money you spend. Furthermore, federal and state money will allow for the advancement of society, as the government has one pot of cash that is distributed across the country for different reasons. The space program, government agencies and so many more things would simply not exist if tax did not exist. The government would not have any money to implement any of its policies or decisions, or have any power over the country at all. In short, tax keeps the country running properly.

  • Demerits

Some people in the United States don't believe in government, and other people just don't believe in big government. People involved with the Tea Party believe that big government is wrong, and hence, will oppose over-the-top taxes. One downside to being taxed is, quite simply, that it costs money. Many people begrudge paying money for tax when they don't believe in big government.

Furthermore, some people may not believe that the proportion is right. Some people think that they have to pay an excessive percentage of what they earn in tax, and this is potentially a demerit.

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